According to a new report by the BBC, the committee of Members of Parliament [MP’s] within the House of Commons has reportedly immersed a resolution to bound problems revolving around digital currencies like listing price volatility, poor client protection, the danger of hacker attacks, and money laundering.
Mentioning further BBC further revealed that the Committee conjointly urged the Financial Conduct Authority [FCA] to supervise cryptocurrencies, though presently the FCA isn’t lawfully enabled to manage either issuers of digital assets nor the cryptocurrency exchanges.
The chair of the Treasury Committee ‘Nicky Morgan,’ quoted spoke saying that “it’s unsustainable for the govt. and regulators to bumble on issuing feeble warnings to potential investors, however refrain from acting.” Morgan added that the regulation ought to address atleast the matter of client protection and anti-money laundering [AML].
Adding further, The Treasury Committee said:
“As the govt. and regulators decide whether or not this ongoing wild affairs are allowed to continue, or whether they are about to introduce new regulation, customers stay unprotected.”
CryptoUK which is a self-regulatory trade association for the U.K. cryptocurrency industry, noted the Committee’s recommendations. Iqbal Gandham, the association’s chairman, aforesaid that “regulatory oversight is crucial to ensure clients safety, guarding against malpractice along with providing abundant required clarity to a business that’s quick maturing.”
Earlier in May, CryptoUK self-addressed the Treasury Committee to advocate for favourable rules, citing its intention to look at the role of crypto currencies within the U.K., together with risks connected to their usage by customers, businesses, and also the govt.
CryptoUK then aforesaid that HM Treasury ought to impart new competencies upon the FCA, which might enable it to manage crypto investment. The organisation argued that rules ought to target trading platforms and brokers, instead of the assets themselves.